How Mutual Funds Can Cause Big Tax Payments In Bear Markets

Many investors that hold mutual funds outside of a tax-advantaged account such a 401(k) or Roth IRA are going to receive a rude awakening when their broker sends them their year-end tax documents. Average people that experienced losses of 30%, 40%, and even 50% or more are likely to find that they owe capital gains taxes on this losers. Don’t think it’s possible? Unfortunately, due to the way mutual funds are structured, it’s a simple reality that many new investors don’t even understand. Find out how ...